Compliance

The information provided here is intended to offer general guidance on tax regulations, benefits, and compliance matters related to pre-tax benefit plans administered by Malloy Banks. For personalized advice or specific guidance, we recommend consulting with a qualified tax advisor or legal counsel

IRS Publications

These publications communicate detailed information to help understand and comply with the laws outlined in the Internal Revenue Code (IRC). They offer comprehensive guidance on the tax treatment, eligibility, contribution limits, and qualifying expenses for various pre-tax benefit accounts and programs

Publication 15-B

Employer’s tax guide to fringe benefits

Provides guidance for employers on the tax treatment of fringe benefits, including how pre-tax benefits such as health and transportation benefits should be managed. It ensures employers understand which benefits are exempt from federal income, Social Security, and Medicare taxes

Commuter benefits

Adoption assistance

Publication 502

Medical and dental expenses

Details which medical and dental expenses qualify for itemized deductions, serving as a key reference for reimbursable expenses through HSAs, FSAs, and HRAs. It ensures that employees and employers understand the eligible expenses that can be reimbursed tax-free

Publication 503

Child and dependent care expenses

Provides comprehensive details about claiming the dependent care credit and how it relates to Dependent Care FSAs. It includes guidance on eligibility, qualifying expenses, and how the credit interacts with employer-sponsored assistance

Dependent Care FSAs

Publication 969

Health Savings Accounts and other tax-favored health plans

This publication focuses on HSAs, FSAs, HRAs, and other similar tax-favored health plans, outlining contribution limits, eligibility criteria, tax advantages, and withdrawal rules. It is essential for employees and employers to understand how to maximize tax benefits from these accounts

Publication 571

Tax-sheltered annuity plans (403(b) plans)

Although primarily for retirement plans, this publication is relevant for understanding tax- deferred benefits offered by employers, including educational institutions, which may complement pre-tax benefit offerings. It provides insights into the benefits of tax-sheltered annuities

Tuition Reimbursement Programs

(indirectly related through employer-sponsored educational plans)

Publication 575

Pension and annuity income

This publication details the taxation of pension and annuity income, including rollovers and required minimum distributions. It is valuable for understanding how these forms of income interact with tax-advantaged accounts for retirement and health expenses

Tuition Reimbursement Programs

(especially retiree HRAs for medical expenses post- employment)

Publication 15

Employer’s tax guide (Circular E)

Outlines the tax obligations of employers for withholding income tax, Social Security, and Medicare taxes. It explains how to account for contributions to pre-tax benefit accounts, ensuring compliance with payroll tax regulations

Commuter benefits

Internal revenue codes

These codes collectively create the framework for tax advantages related to pre-tax benefits, ensuring both employers and employees maximize tax efficiency while participating in these plans

IRC Section 125

Cafeteria plans

This section allows employers to offer cafeteria plans, enabling employees to choose from a variety of pre-tax benefits, such as HSAs, FSAs, and certain commuter benefits. By choosing these benefits, employees reduce their taxable income, as contributions are made on a pre-tax basis

Commuter benefits

IRC Section 129

Dependent care assistance programs

This section governs dependent care assistance plans, allowing employers to provide tax-free reimbursement for qualifying dependent care expenses. This includes expenses paid through Dependent Care FSAs

Dependent Care FSAs

IRC Section 132

Certain fringe benefits

This section outlines the tax treatment for certain fringe benefits, including transportation andparking benefits

Commuter benefits

IRC Section 105

Amounts received under accident and health plans

This code section specifies that amounts received by an employee under an accident and health plan for medical expenses are excluded from gross income. It forms the basis for tax- free reimbursements through HRAs

IRC Section 106

Contributions by employer to accident and health plans

Section 106 excludes employer contributions to health coverage from an employee’s gross income. It applies to employer-provided health insurance and contributions to accounts like HSAs and HRAs

IRC Section 213

Medical expenses

This section defines deductible medical expenses, which are used as a guideline for reimbursable expenses through HSAs, FSAs, and HRAs. It includes a broad range of expenses that qualify for pre-tax reimbursement

IRC Section 137

Adoption assistance programs

Section 137 allows employers to provide adoption assistance benefits to employees on a tax- free basis up to certain limits. These benefits are not included in the employee’s gross income, provided specific requirements are met

Adoption assistance programs

IRC Section 127

Employer-provided educational assistance

This section allows employers to offer educational assistance to their employees that is excluded from the employee’s taxable income. This section is particularly beneficial for promoting continued education and skill development among employees

Educational assistance programs

Press releases and bulletins

IRS notices

The IRS releases official notices about pre-tax benefit plans through several key channels and often include Q&A sections to clarify new regulations or guidance, making complex information more accessible to employers and individuals

IRS Newsroom

This section provides the latest news releases, statements, and tax updates, including information on pre-tax benefit plans

Internal Revenue Bulletins (IRBs)

The IRB is the authoritative instrument for announcing official rulings and procedures of the IRS, including those related to pre-tax benefits

IRS Legal Guidance

This section offers access to various forms of legal guidance, such as notices, revenue rulings, and procedures, which provide detailed information on tax laws and regulations affecting pre-tax benefit plans

DOL notices

The Department of Labor (DOL), through its Employee Benefits Security Administration (EBSA), releases official notices about pre-tax benefit plans primarily through its EBSA Newsroom and Compliance Assistance sections on the DOL website.
These notices address common questions and often provide practical examples with detailed explanations to help employers comply with federal requirements

EBSA Newsroom

Provides news releases and updates on regulations, guidance, and enforcement related to employee benefit plans

Compliance Assistance

Offers detailed guidance on benefit plan compliance, including notices, fact sheets, and updates that can impact pre-tax benefits